News – AU – Change in leadership at Austal USA: CEO has resigned, says Schiffbauer

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From left: US. Rep Bradley Byrne, his wife Rebecca Byrne, and the President of Austal USA, Craig Perciavalle, applaud remarks at the christening ceremony for the future USS Mobile on December 7, 2019 (Lawrence Specker | LSpecker @ ALcom) Lawrence Specker | LSpecker @ ALcom

Shipmaker Austal announced on Monday that it had accepted the resignation of Craig Perciavalle, President of Austal USA, to US and Australian “historical affairs” research in the Littoral Combat Ship Program

Austal USA Mobile Shipyard employees were informed by text Monday afternoon that President Craig Perciavalle had resigned. A company spokesman confirmed the contents of the text, which also stated that Austal USA’s Chief Financial Officer Rusty Murdaugh had been appointed interim president was and would continue to serve as CFO, a position he has held for the last four years

Austal USA is around 4000 employees one of Mobile’s largest employers. Two aluminum ships are currently being built for the US Navy, the Independence-class Littoral Combat Ship, and the Multipurpose Expeditionary Fast Transport

Law enforcement officers raided offices in Austal USA in January 2019, although little information was released at the time or since then Austal USA said it was “to work with the U.” Marine on an open inquiry ”

During the same period, Austal Ltd Announced that it was the subject of an investigation by Australian authorities into actions affecting the stock market in 2016. An Australian news agency, Western Australian, more specifically reported that the Australian Securities and Investments Commission was interested in market announcements by Austal, “the to their warning of an annual loss of 122 million USD in June 2016 led ”

Announcement from Austal Ltd Addresses “separate but related investigations” conducted by regulators in the US and Australia, as well as additional investigations conducted by “external lawyers in the US” p”Hired by Austal and Austal USA

Austal Ltd Regulators focused on certain adjustments to financial reporting made by the company in 2016 in connection with the LCS program, as well as on the “procurement of certain ship components for use in connection with US. Government contracts and collection and division of working hours ”

Austal said it had concluded that the financial announcements for 2016 were handled correctly on the Australian Stock Exchange, however, a number of problematic issues were identified:

· “Before mid-2016, inaccuracies in Austal USA’s internally generated cost estimates underestimated the full cost of building the LCS ships, which Austal LtdUnderstanding the level of these costs and the need to change these estimates ”

· The company identified “isolated cases of misallocation of labor hours between vessels in the early stages of the LCS program” but said the total hours reported were essentially correct

Some valves installed on six ships, LCS-10 through LCS 20, did not meet all relevant military specifications.The Navy has since agreed to accept the valves so they do not need to be replaced, Austal said the company said it did “Solved the US The contractual claims of the Navy … and is in talks with US. Regulators regarding these issues ”

It was said that it was “to get in touch with the relevant U” Regulators in relation to these investigations “and were unable to predict what action they might take” However, the company is confident that it will take into account the proactive steps it has already taken to strengthen its internal reporting and compliance practices, to determine whether the questions identified by the investigation have any potential consequences and to ensure such circumstances do not happen again ”

Austal said his relationship with the US. The Department of Defense “stays strong” cited a $ 100 million joint investment that will help the company expand into steel ships

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Austal USA, resignation, ASX: ASB, ASX

News – AU – Change in leadership at Austal USA: CEO has resigned, says Schiffbauer

Source: https://www.al.com/news/mobile/2021/02/leadership-change-at-austal-usa-ceo-has-resigned-shipbuilder-says.html